A-LevelEconomicsGovernment InterventionFeb/Mar 2025Paper 1 Q131 Mark
To help achieve price stability, the government in country F operates a buffer stock scheme, with a minimum price of P₁ and a maximum price of P₂. The current demand and supply in the market is shown. [Figure showing a demand and supply curve, with prices P1, P2 and quantity points G, H, D, L, K, J] What should the government do to ensure the scheme is effective?
Abuy an amount equal to GH
Bbuy an amount equal to KJ
Cbuy an amount equal to LJ
Ddo nothing as the equilibrium price is below P₁
✓ Correct Answer
The correct answer is C: buy an amount equal to LJ
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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